Business in Poland

1/03/2007

As of the New Year the European Union has been joined by two countries - Bulgaria and Romania. What does this mean for Poland and how will this affect its position among the enlarged group of 27 members?

Sofia, the capital of Bulgaria greeted 2007 and the country's EU membership with loud joy. Bucharest, and entire Romania, shared an equally festive atmosphere. Two new EU members having 10 and 14 mandates, respectively, in important decisions concerning the Union's present and future. A combination of their votes, almost equal to that of Spain or Poland, could create a meaningful force. Poland has been a staunch supporter of both countries in their accession process. This has been clearly confirmed by Romanian foreign minister Mihai-Razvan Ungureanu during his visit to Warsaw just a few weeks ago.

' I have to point out how important Poland's support was in the years prior to Romania's accession into the EU. Poland was among the countries, which were behind us in all situations, no matter whether we were going through dire straits or celebrating. Loyal friends are quite rare in this part of Europe. The common action of two sizeable countries like Poland and Romania is very important.’

Eva Kraftcik from the DPA Warsaw office says Poland must be prepared to share some of the attention newcomers, especially the less affluent ones, enjoy in the EU.

’'Poland will no longer be the poorest country of the Union with Romania probably succeeding with the poorest regions and no longer the 7 of Polish voivodships. The other impact will be that the poorest country has the right to most solidarity, which will also mean more money flowing into Romania and Bulgaria. Maybe money Poland is hoping for as well.'

Coinciding with the Bulgarian and Romanian accession is Germany's first day in the EU chair. During its presidency, Germany will be compiling a report on the Union's neighborhood policy. Polish deputy foreign minister Pawel Kowal points to the numerous similarities outlined by Germany and Poland in viewing its tenets.

' Poland would like to see proportionally higher outlays on cooperation with Eastern countries than so far. We are for the neighborhood policy to reflect actions plans targeted at concrete countries, which can be evaluated after a given period. Only then can we analyze the degree to which these countries have come closer to the Union. Another important point are institutions which are to assist in the proper distribution of the funds. In this sense, the understanding of neighborhood policy by Poland and Germany is very close.'

Will Poland benefit directly from the German EU presidency? After all, they are not only Union partners, but also neighbors. Doctor Slawomir Debski from the Polish Institute of International Affairs says preferential treatment is out of the question, but hopes Germany shall tackle the Polish conflict with Russia over the meat import ban as an issue of principle.

'We wish German diplomacy luck and ability in reaching compromise within the Union itself, as well as in relations between the EU and Russia. All member countries, including Poland, are interested in forging an agreement which will reflect the importance of both partners in global politics.'

Poland is sure to look at the present novelties in the EU as an opportunity to redefine and strengthen its role in the region. The potential of an alliance of interests with Bulgaria and Romania, to mention but energy security, together with a warming up of relations with Germany might prove a strong incentive for active participation, says Eva Kraftcik of DPA.

'Poland has always seen itself as a regional leader in Central Europe and could expand and strengthen this role. On the other hand, so far, there has been much talk to put that leadership into action. Maybe it will raise a new attention. Otherwise, Bulgaria and Romania might unite and put a strong point together without Poland, which cannot be to Polish interests, of course.'

This cooperation will undoubtedly be brought to a good start with declarations of no restrictions on the free flow of the labor force from newcomers Bulgaria and Romania. Source:By Slawek Szefs, polskieradio.pl

Online auction group QXL Ricardo is increasing its bet on Poland, with the acqusition of a 75pc stake in price-comparison website Ceneo.

QXL will pay £875,000 in cash for the stake and has the option to buy the remaining 25pc from Ceneo's two founders for a maximum of £875,000.

Under the agreement, the price for the final stake will be partly determined by Ceneo's future revenue, and up to 50pc of the price can be settled in QXL shares.

Robert Dighero, acting chief executive of QXL, said: "This acquisition provides us with expertise in what is currently an underdeveloped area of the e-commerce market in Poland and the potential to develop this area in other geographic markets."

Poland has been a strong market for QXL and helped the group's first-half revenue double to £10.3m. Pre-tax profit rose to £1.8m for the six months to the end of September from £1.7m a year earlier.

Profit was helped after QXL won a three-year legal battle to gain control of its existing Polish operations, which consist chiefly of the Allegro auction site.

Ceneo has over 250,000 listings on its site and about 11 million of Poland's 40 million people have easy access to the Internet. QXL currently operates two classified car and property websites in Poland.

Outside Poland, QXL's main markets are Switzerland, Norway and Denmark.

The company is looking for a new chief executive after Mark Zaleski resigned in September. It is also looking for a new chairman.

Pointed or rounded toes? Wedge heels or stilettos? Large clasps or small buckles? Classic shades of black and brown or more extravagant colours? What shoes will we wear in the upcoming seasons? What belts, handbags and gloves will we choose? What offers will we find in shops?

Poland’s largest trade show for the footwear and leather sector is an excellent opportunity to see market offers and establish new business contacts. It is here that producers, traders and importers meet their clients and gain new business partners.

(The autumn edition of the Fair of Shoes, Leather and Leather Goods was a record-setting show with almost 300 exhibitors from 17 countries and 8,500 traders.)

New designs, collections and innovative technologies will be showcased at the 3-day spring meeting for the sector in Poznan. Trade fair offers will be presented at stands and during special footwear and leather clothes shows – FASHION & TIME. Professional training sessions, seminars and conferences will accompany the trade fair.

The exhibitors will compete for the PIF Gold Medal and the Acanthus Aureus Awards. The Poznan International Fair Gold Medal is presented for products of high quality and exceptional properties. The Acanthus Aureus Award is presented for stands that are favourable to the implementation of corporate marketing strategies.

In response to suggestions of our exhibitors, we have changed the opening times: you can visit the show from 10 a.m. to 6 p.m. on the first and the second day and from 10 a.m. to 4 p.m. on the last day of the show.Source:fibre2fashion.com

The Polish government has arranged a one-month tour for a group of young Iranian directors which will begin on February 20.

The group is comprised of ten students who direct theater troupes selected by the Tehran Theater Workshop, an institute promoting independent theater groups in Iran, the Persian service of ISNA reported on Tuesday.

They are scheduled to visit four Polish cities and to have meetings with several of the country’s distinguished stage directors.

1/02/2007

The delegation of the Red Crescent Society of Azerbaijan led by its President, Milli Majlis deputy Novruz Aslan visited Poland at the invitation of this country�s Red Cross.

The main objective of the visit was to exchange views on the cooperation between Azerbaijan Red Crescent Society and Poland Red Cross in accordance with the strategy and mission of the International Red Cross and Red Crescent Society Movement. During the visit, Red Crescent Society became familiar with the activity of the Poland Red Cross and exchange expertise.

Azerbaijan delegation met with secretary general of Red Cross of Poland Przemislaw Kania, head of program department Krzistof Kedzierski.

Then, representatives of Azerbaijan also visited retirement home in Krakow.Source: http:azertag.com

According to data from the European Employers’ Federation, the monthly minimum wage, that is determined as e310.92 in Turkey, is e1,503 in Luxembourg, e1,293 in Ireland, e1,273 in The Netherlands, e1,269 in Britain, e1,234 in Belgium and e1,218 in France.

The minimum wage worth e668 in Greece is nearly twice that of Turkey. The minimum wage is e631 in Spain, e580 in Malta, e512 in Slovenia and e437 in Portugal.

The lowest minimum wage – e129 – is in Latvia. The minimum wage in Lithuania is e159, e183 in Slovakia, e192 in Estonia, e234 in Poland, e247 in Hungary and e261 in the Czech Republic. The minimum wage in Bulgaria and Romania, who join the EU tomorrow, is e82 and e90 respectively.

There is no minimum wage in Germany, Austria, Italy, Denmark, Finland, Sweden or Cyprus.Source:independent.com.mt

PKM DUDA is a group of Polish meat producing businesses and they're teaming up with manufacturing construction company Lurgito build a new ethanol plant in Poland. They will be building a facility with a capacity for 33 million gallons a year of ethanol from corn. The plant will consume about 330,000 tonnes a year of corn as a feedstock. Since the European Union has directed that gasoline and diesel fuels should consist of 5.75 percent biofuels by 2010, everyone is jumping on the bandwagon. The requirement means a demand of 400 million gallons of biofuel for the Polish market alone. Duda will also be working on bio-gas production from its meat production facilities.Source:http:autobloggreen.com

Polish Ministry of Education has requested information from schools on the situation of underage mothers and mothers-to-be. Specifically, the ministry wants to find out, what kind of help is provided to teenagers in a difficult situation, so they can continue their education - whether maternity leaves, convenient exam schedules and financial help are available for underage mothers.

Education Minister, Roman Giertych:

'If Polish schools are obliged to provide all the necessary help to a pregnant students, then we have to have the knowledge to know how to supervise this.'

Data collected from schools will serve as basis for a program assisting young women in difficult situation with their educational perspectives. The program is to ensure that pregnant teens do not face discrimination and are not pressured into having an abortion, but get the necessary help and support from school institutions.

Some students confirm that pregant schoolgirls are at times subjected to improper treatment:

'They are laughed at and singled out. That girl had a bad reputation afterwards and she was bullied.'

Mirosław Mikołajczyk is a teacher with over 15 years of experience at schools of different levels. Mikołajczyk has not personally witnessed discrimination directed against at pregnant girls at school, but still welcomes any effort aimed at supporting students in difficult position:

'I haven't met wvery many pregnant students in my career, just five or six maybe over the last 15 years. But, as I recall, they have always been approached by the teachers and by the headmaster of the school with greatest care, they were given opportunities to complete their examinations, they were offered help nad assistance by both the management of the school and the teaching staff. However, if the proposals coming from the ministry now are aimed at making this help more systematic, I would of course welcome this idea, since those girls actually need this help, instead of being pressured into abortion by some groups or organizations.'

Part of the ministerial project is to provide special funding for individual tutorials for girls, whose health situation makes it problematic for them to attend regular classes. Education Minister Roman Giertych again:

'During pregnancy there can be situations when a woman cannot participate in regular classes. It would be a good idea to provide funds to enable such a woman to continue her education.'

Ewa Ćwikła, headmaster of a junior high school in Łódź is of the opinion that it is hospitals and not schools which should be surveyed about the numbers of underage mothers:

'Schools will have some data on this, but hospitals would, I think, be a better place to look for information on children born to teenagers.'

Grażyna Olszewska from the Education Ministry responds:

'We are asking about the kind of help provided to pregnant students, and not just statistical data about the number of underage mothers.'

Following the Ministry of Education request for schools to provide information on pregnant teenagers, the liberal Gazeta Wyborcza attacked Education Minister Roman Giertych, accusing him of of interfering with the privacy of pregnant teenagers. Roman Giertych responded that he would sue Gazeta Wyborcza, as the articles in Gazeta Wyborcza were, as he put it, spreading lies. The Ministry never requested personal information on any student, but was just interested in whether pregnant teens receive the necessary help and support from school institutions.

'We should do all we can so that women in this situation are protected by the state,' Minister Giertych was quoted as saying.Source: By Joanna Najfeld, polskieradio.pl

President Lech Kaczynski has said the times when Russia could exert influence on the countries of Central and Eastern Europe are a thing of the past. In an interview for the major Italian newspaper ‘Corriere della Sera’ the Polish President also spoke on several European issues.

He said Poland supports EU entry of Turkey as well as that of Serbia and Croatia. However, Lech Kaczynski pointed out that Poland’s voice in forging the Union’s foreign policy is not being considered.

He also said, Poland is in favour of a shorter European Constitution Treaty with only general outlines.

Speaking on the Baltic pipeline project which clearly omits Poland, the Polish head of state considered it a form of economic blackmail. He underscored that should the pipeline go through Poland and Lithuania, it would cost far less and not endanger the natural environment.

With regard to the introduction of the euro, Lech Kaczynski said Poland is not a wealthy enough country yet and does not want to repeat the mistakes made by Italy where the common European currency had led to a considerable rise in living costs.Source:http:polskieradio.pl

Reviewing Polish achievements in 2006 economy minister Piotr Wozniak said a faster than envisaged development rate has been noted. He underscored the quick pace in the decrease of unemployment figures.

In November, the rate went down to 14.8% as compared to 17.2% in the same period last year. Wozniak dismissed allegations that the fall in unemployment has been the result of a large emigration wave of Poles seeking jobs in the EU. According to the minister, in many cases the official migration statistics only confirmed the whereabouts of those who had left Poland earlier and worked illegally abroad.

Wozniak emphasized the government’s interest in creating favourable conditions for foreign investors, at the same time securing Polish interests. He quoted the example of maintaining EU tariffs on strawberries, which Poland had been asking for to protect its growers from an influx of cheap imports from China. Poland had fought this battle alone, Wozniak reminded.Source:polskieradio.pl

I stood at the end of the frozen runway, peering through the mist, trying to make out the terminal building in the distance.It was exactly at this spot, and under the cover of darkness, that the CIA planes did their business.

"They always followed the same procedure," says Mariola Przewlocka, the manager at the remote Szymany airport in north-east Poland when the strange flights arrived during 2003.

"We were always told to keep away. The planes would stay at the end of the runway, often with their engines running. A couple of military vans from the nearby intelligence base would go up to them, stay a while and then drive off, out of the airport.

'Cash payments'

"I saw several of these flights but never saw inside the vans because they had tinted windows and they never stopped at the terminal building.

"Payment was always made in cash. The invoices were made out to American companies but they were probably fake," says Mrs Przewlocka.

European MPs visited Poland to investigate the claims

In September 2006, President Bush admitted what had been suspected for a long time - that the CIA had been running a special programme to transport and interrogate leading members of al-Qaeda, away from the public spotlight.

Human rights groups have expressed concerns that the prisoners may have been tortured.

The hunt has been on ever since to locate the secret prisons, or "black sites" as they are known.

Poland and Romania have been named by investigators as hosting such sites.

The claims are denied by both governments.

CIA landings

After a week of meetings in smoky Warsaw restaurants and coffee bars with Polish intelligence sources, airport workers and journalists, I obtained what I had been looking for, and something that nobody in authority wanted to reveal, the flight log of planes landing at Szymany airport.

They confirmed my eyewitness's account - that a well-known CIA Gulfstream plane, the N379P, had made several landings at the airport in 2003.

The plane has been strongly linked to the transportation of al-Qaeda terrorists.

Another plane, a Boeing 737, had flown direct from Kabul to this remote Polish airport.

"There is no particular reason for a Gulfstream to stop there. So there has to be a reason why the plane is stopping there and the fact that everyone is trying to conceal this reason makes it all the more interesting to try to find out what it is," says Anne Fitzgerald from Amnesty International.

I followed the route of the military vans from the airport to the nearby secret Polish intelligence base at the village of Stare Kiejkuty.

He says: "It's almost a foregone conclusion that Poland hosted a CIA Black Site."

But the authorities in Poland do not want to talk about it.

All requests for interviews with government ministers were rejected. The European parliamentarians met a similar wall of silence.

One civil servant from the prime minister's office claimed a secret, internal inquiry had concluded there had been no "black site" in Poland.

Others disagree.

"I think it's quite probable there was a kind of transfer site, a black site, in Poland. There is a Kafka-like mood in Warsaw. No one from the government has the will to answer our questions," says Jozef Pinior, a senior Polish politician, who has called for a commission to investigate the claims.

With Polish troops serving in Afghanistan and Iraq, and with the United States as the country's key ally, there is no desire to delve into the secret deals made in the secret war against international terrorism.

The US state department has said it always complies with its laws and treaty obligations and respects the sovereignty of other countries.

But the truth of Poland's role may soon emerge.

The new Democratic-controlled US Congress may begin its own investigation into the CIA secret prisons programme in the next few months.

The search for Poland's secret CIA prison is broadcast in Global Account for the first time at 23.06 GMT on Thursday 28 December on BBC World Service.

A longer version of the same programme, "Chasing Shadows", will be broadcast on BBC Radio 4 at 20.00 on Tuesday 2 January , repeated Sunday 7 January at 17.00.

Update 18.00 CET: Russian state monopoly Gazprom has assured that gas deliveries for its European clients will continue on a regular basis.

Earlier it was feared that Russian-Belarussian dispute over gas prices may affect gas supplies to Poland, Lithuania and Germany. More than 20% of Russian gas exports go on a transit route across Belarus. Cutting off Belarus, which refused to accept a rise in prices for natural gas imports, could mean shortfalls for Europe, if Belarus still siphons off gas that goes through its territory to Western countries. Gazprom now assures this will not be the case.

Russian gas supplies to Belarus are to cease on January 1, if no contract is signed within the next 3 days. Commenting on the situation, head of Polish presidential chancellery Aleksander Szczygło has said that Poland will continue to work to diversify its energy sources in order to lessen Poland's dependence on Russian energy. Fuel market analyst Andrzej Szczęśniak is of the opinion that a real crisis in gas supplies in Poland is not likely.Source: polskieradio.pl

ESTONIA is, like, so 2006 and Cuba is over. The place to go in two-double-oh-seven, at least if you’re a computer components manufacturer, will be Poland.

Sharp said that it will begin manufacturing LCD TV modules in Łysomice, Poland next month with capacity starting at 100,000 units per month in a 150m euro investment.

In September, Dell said it planned a €200 million site in Łódź, Poland to speed up European PC deliveries and complement the Limerick, Ireland site.

Why is Poland such a hot centre? Bright people, low costs, decent infrastructure and a nice central location for European distribution would certainly be among the answers. Not forgetting the fine vodka and gherkins, of course. µ

INQBLOT Poland is the sixth most populated EU member state by the reckoning of Wikipedia.

Poland is prepared for the possibility of Russia’s cuttoff of gas supplies to Belarus which may reduce flows to Europe in the first days of January – confirmed Poland’s deputy foreign minister Pawel Kowal.

He said that in response to the news that the latest round of talks between Russia’s Gazprom and Belarus on 2007 gas prices had ended without agreement. Speaking on Polish Radio Kowal said that Poland is ready for any scenario since it imports gas not only through Belarus but also Ukraine.

Moreover, the country has extra gas supplies stored while gas exploration on its territory covers one-third of the demand. Minister Kowal stressed, however, that if such a situation continues it could become problematic.

He reiterated that the issue of Poland’s energy security is of key importance and that it requires discussion about new procedures on raw materials as part of the European Union – Russia relations.Source: polskieradio.pl

Tokyo, Japan, Dec 27, 2006 - (JCN Newswire) - Sharp Manufacturing Poland Sp.zo.o. (SMPL), a manufacturing and sales subsidiary of LCD modules located in the Republic of Poland, will begin production of LCD TV modules in January 2007. Initial production capacity at SMPL will be 100,000 modules per month.

SMPL was established in Lysomice in the north-central part of the Republic of Poland in April 2006. This plant will begin production of LCD modules which will be embedded in large-screen LCD TVs for the European market to be manufactured at Sharp's plant in Spain and Loewe's plant in Germany.

In addition, SMPL is considering manufacturing LCD TVs in 2007 to meet the growing demand in the European market.

Sharp Corporation (TSE: 6753) is a worldwide developer of innovative productsand core technologies that play a key role in shaping the future ofelectronics. As a leader in liquid crystal displays (LCDs) and digitaltechnologies, Sharp offers one of the broadest and most advanced linesof consumer electronics, information products and electroniccomponents, while also creating new network businesses. SharpCorporation employs about 22,949 people in the world (as of December31, 2005) and recorded consolidated annual sales of 2,797,109 millionyen for the fiscal year ended March 31, 2006. For more information,please visit www.sharp.co.jp.

Russia has announced a fourfold increase in the prices for natural gas deliveries to Belarus. The government in Minsk has flatly opposed the move and rejected a counter offer of a smaller price hike in return for a fifty percent share in the Belarusian distribution system. Can this bilateral Russian-Belarusian problem have a negative effect on deliveries of Russian gas to Poland?

Of the 6.8 billion cubic meters of Russian gas imports annually, Poland receives 2.8 billion through Belarus. The majority is delivered through Ukraine. Furthermore, Polish reserves are full having in storage over one billion cubic meters of gas. So is there really anything to worry about?

Deputy foreign minister Pawel Kowal told Polish Radio that though Poland satisfies some one third of its demand from domestic sources, it must also be remembered the duration of the conflict could be crucial.

' In a relatively short period this does not pose greater danger, but theoretically, in the long run, it could be problematic. This is nothing new for us.'

Former economy minister Janusz Steinhoff reminds of the hard lesson Poland had received in the past.

' Poland receives part of the Russian deliveries from Ukraine and a portion from Belarus. Our concern is raised by the fact that disruptions in its transfer through Belarus may have and adverse effect for Poland which had been witnessed two years ago.'

Bohdan Wyznikiewicz from the Market Research Institute says Russia and Belarus may have become seasoned opponents in their conflicts over gas, but Polish industry could be affected as a result of these bilateral conflicts.

' It is not clear what the intentions of Russia are in this conflict. But I think both sides have learned from their experience last year and are prepared for a new disturbance in gas deliveries. If the situation worsens, then some industrial enterprises in Poland could be in trouble. Especially in the chemical industry where gas is used.'

Deputy foreign minister Pawel Kowal points to the necessity of adopting a universal EU policy towards the issue of importing Russian energy supplies, as the current problem is not only a potential concern to Poland.

' Especially the energy sector requires a serious partner-like approach of Europe towards Russia so that, for instance, gas prices would not even be considered a political weapon of any kind. I hope this situation will bring us closer to such a treatment of Russia.'

Bogdan Wyznikiewicz fully agrees and also recalls the imperative need for diversification of energy imports.

' This situation should also be a lesson for the Polish government and should speed up investment on alternative sources of gas for Poland.'

The current Russian dispute with Belarus over gas prices and its potential effect on the situation of some EU members, including Poland, is also a good opportunity to return to the Polish concept of creating a European emergency network to soften the impact of any such danger created by energy conflicts with Russia.Source: By Slawek Szefs, polskieradio.pl

Robert Kubica may only have contested six grands prix, but he is already one of Poland's most famous faces.The Swiss newspaper 'Blick' quoted the BMW-Sauber racer, who according to speculation recently signed a four-year contract with the German squad, as lamenting his new image as a F1 star of the future.

"No longer can I walk down the street or buy something in a supermarket," the 22-year-old said.

"I have become the hunted!"

'Blick' says the extent of the Pole's popularity became evident when Paparazzi rented a house opposite his parents' house in Krakow.

Kubica added that he therefore has to "creep in and out" of his own home.